Bitcoin (BTC) $97,667.7 The market moves with hopeful expectations after the President election. Bitcoin prices are expected to reach record levels after Donald Trump’s inauguration on January 20.
Big Buy on Deribit Exchange
Last Saturday, a trader on crypto exchange Deribit spent more than $6 million to buy call options with a strike price of $100,000 expiring on March 28. According to Amberdata, this transaction predicts Bitcoin will reach new highs within a few months of Trump’s inauguration.
Strong Rally Expectation
Traders are also in a net buyer position at the strike price of $120,000. This indicates a strong expectation that Bitcoin will rise above this level. The most popular option on Deribit, the $120,000 call, held $1.52 billion in notional open interest at press time.
Bitcoin Maintains $100,000 Level
BTC is trading above $99,500 as the leading cryptocurrency by market cap. According to CoinDesk and TradingView data, Bitcoin is pointing at the $99,500 level, showing an 8% recovery from $91,384 on December 30.
“The inauguration and its immediate aftermath will be the best time for bullish statements and policies that could contribute to Bitcoin’s rise,” said Greg Magadini, director of derivatives at Amberdata.
CF Benchmarks stated that regulatory changes could have a positive impact on the Bitcoin market. However, possible delays in policy developments may buffer market optimism.
“A restructured SEC led by pro-crypto could reduce enforcement risks and foster innovation. These changes can boost investor confidence,” CF Benchmarks said in its annual report.
Following Donald Trump’s victory in the US elections in November, expectations of pro-crypto regulatory changes have strengthened crypto market sentiment. Bitcoin rose from around $70,000 to new highs of around $108,000 post-election. However, the momentum of the rally faded in the second half of December due to year-end profit taking and expectations of the Fed’s tight monetary policy.
Market participants are watching carefully for new regulations and the advantages the Trump administration could create for cryptocurrencies. It is predicted that Bitcoin may experience volatility in the short term. Investors closely follow the impact of political developments on market dynamics.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
